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Managing Foreign Exchange Risk for the Travel Industry

We support tour organizers, travel agents and vacation planners with international payments and FX exposure by helping them mitigate market risk and lock in profits.

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Travel FAQ | Western Union Business Solutions

What tools do travel agents use?

Travel agents, tour operators vacation planners have countless factors to consider while they plan trips for clients and groups. One of their biggest challenges is handling currency volatility. Many travellers book their vacations well before their departure date. This means that payments accepted during booking could be worth less during the actual vacation period. Currency planning is a key tool for those in the profession. For a free health check on your foreign exchange exposure, visit our travel page and connect with one of our travel specialists.

Are travel agencies affected by Brexit?

The ongoing Brexit negotiations have led to fluctuations with the British pound. The currency has experienced steep drops since the unexpected vote in June 2016. As the United Kingdom is a popular vacation spot, many tour operators can be left scrambling when the currency fluctuates unexpectedly. To discuss strategies to help manage exposure risk, connect with one of our travel specialists.

How do travel agencies get local currency?

Western Union Business Solutions works with travel groups and tour operators to manage international payments and currency. We also have agent locations across the globe available to help with money transfers. In fact, we have nearly 10x more agent locations than Starbucks™ and McDonald’s™ combined.

Are travel agencies affected by currency exchange rates?

Yes, vacation planners must deal with funds from all around the world. They often have to pay local guides and accommodation in the host country’s currency. Depending on the location, that value can fluctuate and it’s impossible to predict when it will benefit the travel company and when it will cause them to lose money.

What are the foreign exposure solutions for travel agents?

The bottom line of a travel agency and tour operator can be greatly affected by fluctuating currency. In order to manage this risk, vacation planners should consider hedging. This practice can provide a stable rate for the business to transact with. To find the right plan for your company, connect with one of our travel specialists.